Tennessee Rules on Service Fees for Data Conversion

Nov 19th, 2015

The Tennessee Department of Revenue ruled that a lab services provider did not owe sales and use tax on fees paid to record management companies for data conversion. The record management companies converted data from one type of digital content into a different type of readable content. This was not the provision of a taxable service or item because the software used to accomplish this task was developed internally and used by the record management companies only. Therefore, it did not involve the remote access of software by the lab services provider and was not taxable.